Russian Energy Group to Supply Energy to Cryptomining Industries in Siberia

Russian Energy Group to Supply Energy to Cryptomining Industries in Siberia

As the demand for electicity increases among investors in the Cryptomining industries, Russian energy company En + Group is preparing to offer power to cryptocurrency miners at some of its plants, according to Vedomosti.

As the demand for electicity increases among investors in the Cryptomining industries, Russian energy company En + Group is preparing to offer power to cryptocurrency miners at some of its plants, according to Vedomosti.

The Russian company is prepared to offer energy from five of its energy plant located in Siberia, explained the En + CEO, Maxim Sokov. He said they are located in the Irkutsk Oblast, a Russian state territory in southeastern Siberia. Two locations are located near the city of Ust-Ilimskin, one near the city of Bratsk and two near the city of Irkutsk.

En + Group suggested that the cold climate of the region around the three zones and the availability of cheap electricity make the condition attractive for cryptocurrency extraction.

The company is currently negotiating with several crypto mining businesses internationally including Chinese and US investors. The businesses are to construct mining companies near the energy plants that will serve as electricity consumers.

The energy demand for cryptomining could reach 100 MW by for En + group by 2018 and the group could earn around 980 million rubles (~ 17.2 million USD), according to Vedomosti. “100MW could bring in more than $10 to $15 million,” proposed Natalia Porokhova, director of ARA’s Research and Forecasting Group, through the media.

The Russian government last year proposed a plan for the regulation of cryptocurrency in the country. Earlier this month, the Bank of Russia said it would allow crypto mining in the country, but suggests that miners sell their coins abroad. There are about 50,000 crypto miners operating in the country according to the Russian Association of Cryptocurrencies and Blockchain (Racib), a Kremlin-backed lobby group.

The CEO pointed out that his company will benefit from recruiting miners from China, where strict regulations on cryptocurrency are already in place.